Top five cashback credit cards

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Cashback credit cards can be a great way to earn tax-free cash rewards on your spending and, if managed efficiently, can offer a host of benefits.

Best suited to regular card users, a wide range of cashback cards are available in the market which offer various rewards for spending in the form of cash, vouchers and even air miles.

They're ideal for this time of year too – with the pre-Christmas shopping rush in full swing, what could be better than earning a little reward for yourself as you buy all those presents?

But, as with any credit card, you must be confident that you can pay off the balance in full each month and avoid paying just the minimum repayment, otherwise the interest will quickly add up.

Similarly, failure to keep up regular repayments on your card will incur hefty interest rates which will cancel out any rewards or benefits associated with the card, so proper management is vital if you want to make the most of those rewards.

Here are the current top 5 cashback credit cards:

Introductory 5% cashback for first three months on purchases up to £2,500 (capped at £125)

1.25% cashback after first 3 months

£25 annual fee

Emergency cash service available

Penny says… "Sitting at the top of the cashback sector is the Platinum Cashback Card from American Express. Paying a market-leading 5% cashback on purchases up to £2,500 during the first three months, this card also offers an emergency cash service.

"It is worth remembering that the 5% offer will run for three months, after which a very competitive 1.25% will be received on all other purchases."

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